Chương 2 Nghị định 79/2000/NĐ-CP: Căn cứ và phương pháp tính thuế

Chapter II

TAX CALCULATION BASES AND METHOD

Article 5.- The bases for calculating value added tax are the tax calculation prices and tax rates.

Article 6.- The value added tax calculation prices of goods and services defined in Article 7 of the Valued Added Tax Law are specified as follows:

1. For goods and services sold by production or business establishments, they shall be the sale prices without value added tax.

2. For imported goods, they shall be the border-gate import prices plus (+) import tax. The border-gate import prices shall be determined according to the regulations on import tax calculation prices.

3. For goods and services used for exchange or internal consumption, as gifts or donations, they shall be the value added tax calculation prices of goods or services of the same or equivalent type at the time such activities are conducted.

4. For property leasing activities, irrespective of types of property and leasing forms, they shall be leasing prices without tax. In cases where the rental is paid in installments or in advance for a certain leasing duration, they shall be such rental without value added tax paid in installments or in advance.

For cases of leasing foreign derricks, machinery, equipment and/or transport means of types which cannot be manufactured at home for sub-lease, the tax calculation prices shall be entitled to minus the leasing prices to be paid to foreign countries;

5. For goods sold by mode of installment payment, they shall be the non-tax selling prices of such goods paid in lump-sum (excluding the installment payment interests), but not calculated according to the amount of money paid in each installment.

6. For the goods processing activities, they shall be the non-tax processing prices (including remuneration, fuel, power, auxiliary materials and other processing expenses).

7. For construction or installation activities, they shall be the non-tax construction or installation prices of projects, project units or completed work volume performed. In cases where the project construction or installation is settled according to the unit prices and work unit volume completed and handed over, the value added tax shall be calculated on the value of the completed and handed-over work volume.

- For activities of investing in the construction of houses for sale or construction of infrastructure for transfer by units assigned land by the State, the tax calculation price shall be the selling prices of houses or infrastructure attached to land, minus (-) the land use levy amount payable to the State budget;

- For activities of investing in the construction of infrastructure for lease, the tax calculation price shall be entitled to minus (-) the land leasing prices payable to the State budget.

8. For real estate dealing activities, the tax calculation price shall be entitled to minus (-) the land value subject to the land use right transfer tax;

9. For goods and service sale-purchase agency or brokerage activities with commissions, non-tax prices to serve as tax calculation basis shall be the commissions earned from such activities;

10. For particular goods and services entitled to the use of payment vouchers in which the inscribed payment prices are the prices which have included value added tax, the non-tax prices to serve as tax calculation basis shall be determined by the prices that have included tax divided by [1+(%) of the tax rates of such goods and services].

The tax calculation prices of goods and/or services defined in this Article shall also include additional collections and surcharges enjoyed by the business establishments.

The Finance Ministry shall provide specific guidance on the value added tax calculation prices of goods and services specified in this Article.

Article 7.- The value added tax rates prescribed in Article 8 of the Value Added Tax Law, Article 2 of Resolution No.90/1999/NQ-UBTVQH10 of September 3, 1999 and Article 2 of Resolution No.240/2000/NQ-UBTVQH10 of October 27, 2000 of the National Assembly Standing Committee amending and supplementing the list of goods and services not subject to value added tax, and value added tax rates applicable to a number of goods and services, are specified as follows:

1. The tax rate of 0% shall be applicable to: export goods, including those subject to the special consumption tax and goods processed for export; the service of repairing machines, equipment and transport means for foreign countries; computer software for export; labor export services.

Export goods include those exported to foreign countries, exported into export processing zones or exported to export processing enterprises as well as other specific cases regarded as exports according to the Government’s regulations.

2. The tax rate of 5% shall be applicable to the following goods and services:

- Pit coal;

- Mechanical engineering products (excluding those used as consumer goods);

- Products from the metallurgy, rolling or extrusion of ferrous, non-ferrous and precious metals, other than imported gold specified in Clause 24, Article 4 of this Decree;

- Molds of all kinds;

- Base chemicals;

- Computers, computer component sets;

- Explosive materials;

- Welding rods;

- Tires and sets of tires and inner tubes, of a size of 900-20 or larger;

- Goods subject to special consumption tax in the process of commercial business, for which tax shall be paid by the tax deduction method;

- Grindstone;

- Newsprint paper;

- Insecticide sprayers;

- Earth, stone, sand, gravel;

- Electric cable for a voltage of 600 V or higher;

- Nets, ropes and fibers for knitting fishing nets;

- Clean water in service of production and daily life, other than clean water not subject to tax defined in Clause 18, Article 4 of this Decree and beverage of the 10% tax rate group;

- Fertilizers, ores used for fertilizer production; insecticide, pesticide and growth stimulants for domestic animals and cultivation plants;

- Specialized medical equipment, machinery and instruments; medical cotton and sanitation bandage;

- Artificial limbs, crutches, wheelchairs and other special-use tools for the disabled;

- Curative and preventive medicines for human beings and domestic animals, chemical-pharmaceutical products, pharmaceutical materials used for the production of curative and preventive medicines;

- Neutral glass tubes (tubes and molded tubular vessels);

- Teaching and learning aids, including models, pictures, writing boards, chalk, rulers, compasses for teaching and learning purposes and specialized teaching, researching or lab equipment and tools;

- Children’s toys;

- Books of all kinds, except for those of types not subject to the value added tax specified in Clause 13, Article 4 of this Decree;

- Cultivation, husbandry and aquaculture products that have not yet been processed or have gone through only the preliminary processing form, such as cleaning, chilling or sun-drying, and including animal breeds, plant saplings, seeds, except for those directly produced and sold by organizations and individuals and not subject to tax according to the provisions of Clause 1, Article 4 of this Decree;

- Unprocessed forest products (excluding timber and bamboo shoots); fresh and raw foodstuffs and foods;

Unprocessed forest products are those exploited from natural forests such as rattan, bamboo of various species, mushrooms, Jew’s ear fungus; medicinal roots, leaves, flowers and plants and other forest products;

Fresh and raw foodstuffs are those not yet processed or only preliminarily processed;

Foods include paddy, rice, maize, potatoes and manioc;

- Products made of jute, rush, bamboo of various species and assorted leaves, which are manufactured and processed from jute, rush, bamboo of various species and assorted leaves as main raw materials;

- Artificial pressed boards;

- Preliminarily processed home-grown cotton, which is peeled, seed-removed and classified cotton;

- Preliminarily processed rubber latex;

- Feeds for cattle, poultry and other domestic animals;

- Construction and installation;

- Houses, technical infrastructure of establishments assigned land by the State for investment therein and construction thereof for business purposes;

- Maintenance, renovation and/or restoration of historical and cultural relics and museums, except activities specified in Clause 15, Article 4 of this Decree;

- Scientific and technical services, including activities of scientific and technical research, application and instruction;

- Dredging of canals, navigation lanes, river ports and sea ports; salvage and rescue activities;

- Transport, loading and unloading;

- Services in direct service of agricultural production, including activities of plowing and harrowing agricultural land; digging, embanking and dredging canals, ditches, ponds and lakes in service of agricultural production; farming, cultivating, tending plants, preventing and combating pests and diseases; collecting and harvesting agricultural products;

- Magnetic tapes and disks, whether recorded or not;

- Distribution and projection of video films;

3. The tax rates of 10% shall be applicable to the following goods and services:

- Petroleum oil, gas, ores and other mineral products;

- Commercial electricity sold by electric power production and trading establishments;

- Mechanical engineering products for use as consumer goods;

- Electronic products;

- Chemical products (other than base chemicals), cosmetics;

- Fibers, fabrics, garments and embroidering items;

- Leather and leatherette products;

- Paper (excluding newsprint paper) and paper products;

- Sugar, milk, confectionery, beverage and other processed foodstuffs;

- Ceramic, pottery, glass, rubber and plastic products, wood and wood products; cement, bricks, tiles and other construction materials (except for products in the 5% tax rate group);

- Postal, mail and telecommunications services;

- Lease of houses, offices, warehouses, ports, storage yards, plants, workshops, machinery, equipment and transport means;

- Consultancy, auditing, accounting, survey and designing services;

- Photographing, printing and developing films, cassette tape recording, dubbing and renting; video shooting;

- Hair dressing, tailoring, fabric dyeing and laundry;

- Hotel, tourist and food and drink catering services;

- Other goods and services which are not defined in Article 4 and Clauses 1, 2 and 4 of Article 7 of this Decree;

4. The tax rate of 20% shall be applicable to the following goods and services:

- Gold, silver and gems purchased and/or sold by business establishments;

- National construction lottery and other forms of lottery;

- Sea shipping agency;

- Brokerage services.

Basing itself on the tax rates prescribed in this Article, the Finance Ministry shall specifically guide the application of such tax rates to goods and services of various kinds.

Article 8.- The value added tax calculation methods defined in Article 9 of the Value Added Tax Law are specified as follows:

1. The tax deduction method:

The payable value added tax amount shall be determined as being the output value added tax amount minus (-) the deductible input value added tax amount.

a/ An output value added tax amount shall be equal to the tax calculation price of taxable goods or service to be sold or provided multiplied (x) by the value added tax rate of such goods or service.

In cases where an establishment sells goods or provides services subject to value added tax but fails to specifically inscribe the non-tax selling price and the value added tax on added value invoices, the output value added tax shall be calculated on the selling price of such goods or services, except for cases where invoices or vouchers stating payment price already with value added tax are allowed to be used.

b/ Deductible input value added tax shall be equal to the total value added tax amount stated in the added value invoices for purchase of goods or services with vouchers of payment of value added tax on import goods used for production of or trading in goods or services subject to value added tax, and tax amount to be deducted at the rate prescribed in Article 9 of this Decree.

c/ The tax deduction method shall be applied to all business establishments, except for those subject to the method of direct calculation on added value as defined in Clause 2 of this Article.

2. The method of direct calculation on the added value:

The payable value added tax amount shall be equal to the added value of taxable goods or services to be sold multiplied (x) by the value added tax rate applicable to such goods or services.

a/ The added value of goods or services shall be equal to the payment price of goods sold or service provided minus (-) the payment price of corresponding purchased goods or services.

The payment price of goods or services purchased or sold is the actual purchase or sale price stated on the purchase or sale invoice of such goods or services, including value added tax and additional collections and/or surcharge enjoyed by the seller and paid by the purchaser.

The payment price of goods or services purchased shall be determined by the value of purchased goods or services, including the value added tax, which have been used by the business establishments for production of or trading in to be sold goods or services subject to the value added tax.

In cases where a business establishment fails to fully effect the purchase and/or sale of goods and services with invoices and vouchers to be used as basis for determining added value according to the above stipulations, such added value shall be determined as follows:

- For business establishments that sell goods or services with all required invoices and vouchers, thus accurately determining their turnover from the sale of goods or services, but fail to sufficiently acquire purchase invoices of goods or services, the added value shall be determined by the turnover multiplied (x) by the percentage (%) of the added value calculated on the turnover.

- For business individuals who fail to apply or improperly apply the invoices for purchase and sale of goods or services, the tax authorities shall base themselves on the business situation of such individuals to fix the taxable turnovers; and the added value shall be determined by the turnover multiplied (x) by the percentage (%) of the added value calculated on the turnover.

b/ The percentage (%) of the added value on the turnover to serve as basis for calculating added value shall be set by tax authorities suited to each business line or trade.

The Finance Ministry shall guide the determination of specific added value for each business line or trade.

c/ The method of direct calculation on added value shall be applied only to the following subjects:

- Vietnamese individuals engaged in the production and/or business activities and foreign organizations and individuals doing business in Vietnam not under the Law on Foreign Investment in Vietnam, that fail to fully implement regulations on accounting, invoices and vouchers to serve as basis for tax calculation by the tax deduction method;

- Business establishments trading in gold, silver, gems and foreign currencies, which are subject to the value added tax, have to pay tax by method of direct calculation on added value. In cases where an establishment that pays tax by the tax deduction method and conducts business activities of purchasing and/or selling gold, silver and gems, it shall be entitled to calculate and declare tax separately paid for such business activities of purchasing and/or selling gold, silver and gems by the method of direct calculation on added value.

Article 9.- Deduction of input value added tax

1. Business establishments that pay value added tax by the tax deduction method shall be entitled to the deduction of input value added tax as follows:

a/ Value added tax of goods and services purchased for use for the production of and trading in goods and services subject to the value added tax shall be fully deducted;

b/ Input value added tax of goods and services purchased for use for the production of and trading in both goods and services subject to value added tax and those not subject to value added tax, only input tax on goods and services used for the production of and trading in goods and services subject to value added tax shall be deducted.

The business establishments shall have to separately account deductible input tax and non-deductible one; in cases where they cannot to do so, they shall be entitled to deduct according to the percentage (%) between the taxable turnover and the total sale turnover.

c/ Any deductible input tax incurred in a month shall be declared and deducted upon the calculation of payable tax amount of such month.

Particularly for fixed assets, if the deductible input tax amount is large, it shall be gradually deducted or reimbursed according to the provisions of Article 15 of this Decree.

Business establishments that have been paying value added tax by the method of direct calculation on added value, when switching to apply the tax deduction method, shall only be entitled to input value added tax deduction as prescribed for invoices and vouchers arising from the date of calculating value added tax by the tax deduction method.

d/ Production and/or business establishments that pay value added tax by the tax deduction method shall be entitled to input value added tax deduction according to the percentage (%) on the prices of goods and services purchased without added value invoices according to the following regulations:

- The rate of 2% shall be applicable to unprocessed agricultural, forestry or aquatic products; earth, stone, sand, gravel and discarded materials of all kinds purchased without invoices. Business establishments that purchase the above-said articles shall have to make the lists thereof under the tax authority’s guidance.

- The rate of 3% shall be applicable to goods and services subject to value added tax and purchased from production and/or business establishments that pay tax by the method of direct calculation on added value and with sale invoices; goods being unprocessed agricultural, forestry or aquatic products purchased from production establishments with added value invoices but not subject to value added tax in the production process; goods subject to special consumption tax purchased by the commercial business establishments from production establishments for sale; indemnities of insurance business activities.

e/ For business establishments that purchase goods and/or services of particular nature and are entitled to use vouchers stating payment prices which have included value added tax, the prices already with tax shall serve as basis for determining non-tax prices and deductible input value added tax according to the calculation method defined in Clause 10, Article 6 of this Decree.

f/ In cases where a business establishment in Vietnam that has signed contracts with a foreign contractor and paid value added tax on the latter’s behalf, the establishment shall be entitled to input tax deduction regarding the value added tax amount it had paid on the foreign contractor’s behalf.

2. The basis for determining the deductible input tax amount as prescribed above shall be as follows:

a/ For purchased goods or services, it shall be the value added tax amount stated in the added value invoices for the goods or service purchase; for cases where the tax has been paid on the seller’s behalf, it shall be the voucher of tax payment on the seller’s behalf.

b/ For import goods, it shall be the already paid value added tax amount stated on the voucher of payment of value added tax on such import goods.

c/ For purchased goods or services, which are entitled to deduction according to Point d, Clause 1 of this Article, it shall be the actual purchase price inscribed on the list of purchased goods or that inscribed on sale invoices or added value invoices. In cases where the price of purchased goods or services inscribed on the list is incompatible with the market price, the tax authority shall base itself on the market price to fix the price for calculating deductible tax amount.

d/ For purchased goods or services with the use of vouchers stating payment price which has included value added tax, such vouchers shall serve as basis for calculating the deductible input tax amount according to the provisions at Point e, Clause 1 of this Article.

Article 10.- Business establishments shall have to effect the purchase and sale of goods and services with full invoices and vouchers as prescribed by law. Invoices for purchase and sale of goods and services prescribed for business establishments shall be as follows:

1. Business establishments that pay tax by the tax deduction method shall have to use the added value invoices. When making goods or service sale invoices, the business establishments shall have to fully and accurately inscribe the following details: non-tax sale prices, additional collections and surcharges (if any) outside the sale prices, value added tax, payment prices that have included tax.

2. Business establishments that directly pay tax on the added value shall use goods sale invoices. The sale prices of goods or services inscribed on invoices shall be the payment prices that have included value added tax.

3. Business establishments that use self-printed invoices and vouchers shall have to register the form(s) of such self-printed invoices and vouchers with the Finance Ministry (the General Department of Tax) and shall be entitled to use them only after being notified in writing of the permission for use.

4. Business establishments that directly retail their goods to consumers at a sale price lower than the set price, they shall have to make added value invoices or sale invoices; if they fail to make invoices, they shall have to make lists of retailed goods according to the form set by the tax authority to serve as basis for the value added tax calculation; in cases where the purchasers request added value invoices or sale invoices, they shall have to make such invoices according to the regulations.

The Finance Ministry shall prescribe the regime of managing and using invoices and vouchers; issue invoices and vouchers and inspect the use thereof according to the provisions of this Article.